The Canadian government announced on Sunday that it will be extending the restriction on foreign ownership of Canadian real estate by two years in response to concerns that Canadians would be priced out of the country’s cities and towns.
An increase in immigrants and foreign students has been attributed to Canada’s housing affordability dilemma, which has fuelled demand for homes even as rising costs have halted building.
In a statement, the Canadian Deputy Prime Minister, Chrystia Freeland, said, “As part of using all possible tools to make housing more affordable for Canadians, the ban on foreign ownership of Canadian housing, which is currently set to expire on January 1, 2025, will be extended to January 1, 2027.”
According to the Canadian government, concerns about Canadians being priced out of housing markets in cities and towns throughout the nation have been exacerbated by foreign ownership.
In an effort to control the unprecedented number of immigrants who are perceived to be exacerbating the housing issue, Canada declared last month that it would immediately impose a two-year restriction on foreign student visas and that it would also cease issuing work permits to some graduates.
Immigration-fuelled rapid population expansion has increased demand on public services like healthcare and education and contributed to rising housing costs. Opinion surveys indicate that Liberal Prime Minister Justin Trudeau would lose an election if one were conducted right now due to these factors, which have affected his support.